Buying a car from another state- Tax question

[JEDI]

I want a Prizm LSi w/auto transmission and sunroof. GM closed the only plant that made prizms back in April.

I live in VA and the closest Prizm to me w/those specs are in PA.

The reason for the subject is when i bought a used car years ago from a friend in NY, i didn't pay NY taxes. But i had to pay VA taxes.

For new cars, do i pay PA taxes because i bought it in PA, or do i pay VA taxes because I live in VA?

THX

 

[Linflas]

You will pay Virginia taxes when you title and tag it here.

Edit: You may want to check the DMV website as well. It is actually a great resource and there is a lot of business you can conduct online and save yourself a trip to the DMV. Virginia DMV Website

 

[Hubris]

You don't pay taxes on cars until you register it with the DMV. So, whichever state you register it in is the state tax you'll pay.

 

[CPA]

Originally posted by: Hubris
You don't pay taxes on cars until you register it with the DMV. So, whichever state you register it in is the state tax you'll pay.

Won't help your cause, but here in Texas the DMV would not except my tax payment for a car I purchased in Ohio and drove back down here. They said since it was a used vehicle and was purchased out of state I was considered an out of state resident for the purchase. Bringing the vehicle to Texas was not a taxable event. If it would have been new, with a manufacturer's certificate (I think that's what they called it) it would have been a different story. Saved $1200, woohoo.

 

[Linflas]

Originally posted by: CPA

Originally posted by: Hubris
You don't pay taxes on cars until you register it with the DMV. So, whichever state you register it in is the state tax you'll pay.

Won't help your cause, but here in Texas the DMV would not except my tax payment for a car I purchased in Ohio and drove back down here. They said since it was a used vehicle and was purchased out of state I was considered an out of state resident for the purchase. Bringing the vehicle to Texas was not a taxable event. If it would have been new, with a manufacturer's certificate (I think that's what they called it) it would have been a different story. Saved $1200, woohoo.

Sadly in Virginia they have multiple ways to screw us with car taxes including a yearly personal property tax based on the blue book value of the car.

 

[woodie1]

The rules vary from state to state. Some places only charge you tax if you didn't pay any at the original purchase place. Check with your DMV.

 

[Garion]

One more thing to keep in mind.. If you have a trade-in, you often get a tax break on the value of that car. IE, if you're buying a $10,000 car and have a car worth $4,000 to trade in, you may only have to pay taxes on $6,000 - Logic behind this is you already paid taxes on the $4K car, and someone ELSE is going to pay taxes on it again when they buy it from the dealer. That's how it works out here in Washington, in any case. YMMV back east.

- G

 

[SWirth86]

Don't know if this applies, but there's no sales tax in Delaware